S4 Revenue Decline Almost Halted

Sir Martin Sorrell's S4 Capital has reported third quarter revenue down 1.0% on a like-for-like basis (LFL), a great improvement on the first half of the year when the fall just reached double figures.

Q3 results were more positive for the Americas, which represent more than 80% of S4's reported net revenue - here LFL net revenue grew by 1.6%, while in EMEA it fell 26.2% and in Asia Pacific it was down 16.2%.

The firm hinted at significant new business wins, whose timing means they will not prevent this year's total revenue from declining by 'high single figures', but which include General Motors, Amazon, T-Mobile, PIF and 'two unannounced leading US-based Global FMCG companies.'

Sorrell, who is Executive Chairman, says market conditions 'reflect the continuing impact of volatile global macroeconomic conditions,' with clients remaining generally cautious, and technology clients - nearly half the group's revenue - 'continuing to prioritise capital expenditure on expanding AI capacity.' He points to improvements in liquidity and cashflow over twelve months, along with net debt reduction, reflecting a focus on working capital and cost control. Ending on an optimistic note, Sorrell says the firm is 'seeing significant opportunities for new business, particularly driven by its AI tools and capability.'

In September the company reported LFL net revenue down 10.0% to £328.2m (c.$445m) - however it did predict the improved performance in the second half, due to the timing of key contracts.

Web site: www.s4capital.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.